China Property Weekly Digest

Transcription

1 (Issue No. 27) Refer to important disclosures at the end of this report DBS Group Research. Equity 17 Jan 217 Sales momentum remains weak Chongqing imposes.5% property tax of the housing transaction price on first-home buyers who are non-residents and do not work or own a business in the city. The policy is aimed at curbing speculation, in our view. Last week (9-15 January), overall GFA sold declined slightly by.1% w-o-w. GFA sold in Tier I/II/III cities recorded changes of -16%/4%/2% w-o-w. YTD GFA sold was 6% lower than last year s Overall ASP increased slightly by 1% w-o-w. ASPs in Tier I/II/III cities were up by 2%/2%/1% w-o-w respectively Inventory level of key cities decreased to 36 weeks due to low supply. Sell-through rates of new launches in major Tier I & II cities recovered w-o-w to 79% (versus previous week s 74%) Inventory (no. of weeks of sales) of 16 cities* Jan-11 Mar-12 Jun-13 Inventory (no. of weeks) Aug-14 Nov-15 Jan weeks rolling avg New launches in 1 major cities and sell-through rate 25, 2, 15, 1, 5, 32W12 5W12 14W13 32W13 5W13 18W14 35W14 2W15 19W15 36W15 1W16 18W16 35W16 52W16 Source: CREIS, Fang.com, DBS Vickers * Rolling 26 weeks inventory Total units launched (LHS) Sell-through rate (RHS) 6 mths average sell-through (RHS) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % HSI: 22,841 ANALYST Trista QIN trista_qin@hk.dbsvickers.com Carol WU carol_wu@hk.dbsvickers.com Danielle Wang, CFA danielle_wang@hk.dbsvickers.com Ken HE CFA, ken_he@hk.dbsvickers.com Andy YEE CFA, andy_yee@hk.dbsvickers.com Weekly sales performance of major cities (Jan 9 Jan 15) w-o-w YTD vs 216 YTD vs 215 A v g weekly GF A sold.1% 4.% 7.9% ASP.8% 7.3% 17.5% Inventory (no. of weeks) vs same period 216 vs same period 215 YTD GFA sold 6.% 17.4% YTD share price performance Greenland HK Zhong An Glorious Greentown Hopson Shui On Land C Garden First Sponsor Kaisa Minmetals Sino-Ocean Powerlong KWG Small caps Renhe Shimao Yuexiu BJ Cap Land China SCE BJ North Star HSI Index Agile SRE CIFI MSCI China Mid caps Yuzhou SOHO CC Land GZ R&F China South City Lai Fung Large caps China Jinmao CR Land Longfor Ying Li Evergrande Vanke Sunac Poly HK Sector avg: +4% -1% -5% % 5% 1% 15% 2% Source: Bloomberg Finance L.P., CREIS, Fang.com, DBS Vickers ed-th / sa- AH

2 Share price performance YTD Share price performance Greenland HK Zhong An Glorious Greentown Hopson Shui On Land C Garden First Sponsor Kaisa Minmetals Sino-Ocean Powerlong KWG Small caps Renhe Shimao Yuexiu BJ Cap Land China SCE BJ North Star HSI Index Agile SRE CIFI MSCI China Mid caps Yuzhou SOHO CC Land GZ R&F China South City Lai Fung Large caps China Jinmao CR Land Longfor Ying Li Evergrande Vanke Sunac Poly HK Sector avg: +4% -1% -5% % 5% 1% 15% 2% Daily trading volume (Jan 9 Jan 13) US$ mn CR Land Vanke Evergrande Sunac C Garden Poly HK GZ R&F Longfor Shui On Land China South City Shimao Sino-Ocean Yuzhou Greentown Yuexiu KWG SOHO China Jinmao Ying Li China SCE CIFI BJ Cap Land Agile BJ North Star Powerlong Greenland HK Glorious CC Land Renhe SRE Hopson Lai Fung First Sponsor Minmetals Zhong An Source: Bloomberg Finance L.P, DBS Vickers Page 2

3 Average weekly trading volume US$ mn CR Land Vanke Evergrande GZ R&F C Garden Sunac Longfor Shimao Sino-Ocean Yuexiu KWG SOHO Greentown Poly HK Agile China Jinmao Shui On Land Yuzhou BJ Cap Land Greenland HK Renhe China SCE Hopson Ying Li Glorious BJ North Star CC Land SRE Minmetals Zhong An China South City CIFI First Sponsor Kaisa Lai Fung Powerlong YTD Source: Bloomberg Finance L.P, DBS Vickers New projects launched (Jan 9 Jan 15): 26 projects were launched in Major Tier I&II cities. 9 projects were launched in Chengdu Total of 7k units were launched in Major Tier I&II cities. Sell-through increased w-o-w to 79% Unit Beijing Shanghai Shenzhen Guangzhou Wuhan Launches (LHS) Hangzhou Tianjin Chongqing Nanjing Chengdu Sell-through rate (RHS) 1% 8% 6% 4% 2% % 25, 2, 15, 1, 5, 32W12 5W12 14W13 32W13 5W13 18W14 35W14 2W15 19W15 36W15 1W16 18W16 35W16 52W16 Total units launched (LHS) Sell-through rate (RHS) 6 mths average sell-through (RHS) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Page 3

4 Weekly sales performance of major cities Tier I cities Tier I cities: Weekly GFA sales of key cities Cit y GF A Last week ( sm) w-o-w y-o-y % change as compared to Avg of previous 4 weeks Avg 216 Avg 215 Avg 214 Avg 213 Avg 212 Beijing % -32% -28% -11% -26% -13% -34% -35% Shanghai % -45% -14% -4% -42% -19% -26% -8% Shenzhen 4-65% -77% -37% -5% -68% -48% -52% -43% Guangzhou % 46% 14% 3% 33% 74% 36% 33% Tier I total % -31% -16% -25% -26% -2% -19% -13% Tier I cities: Weekly ASP of key cities Cit y ASP Last week (Rmb/sm) w-o-w y-o-y % change as compared to Avg of previous 4 weeks Avg 216 Avg 215 Avg 214 Avg 213 Avg 212 Beijing 36,524-7% 18% -9% 1% 36% 43% 55% 77% Shanghai 24,76 17% -7% % -7% 7% 31% 33% 59% Shenzhen 53,556-3% 19% -2% -2% 62% 127% 143% 186% Guangzhou 16,752 2% 12% 2% 2% 11% 13% 31% 4% Tier I total 32,898 2% 11% -2% -1% 29% 54% 65% 91% Tier I cities: YTD GFA sales of key cities Tier I cities: Avg ASP of key cities sm Yoy (%) RMB/sm Yoy (%) 1,6 1,4 1,2 1, Shanghai Beijing Guangzhou Shenzhen 217 (LHS) 216 (LHS) 2% 1% % -1% -2% -3% -4% -5% -6% -7% 65, 55, 45, 35, 25, 15, 5, (5,) (15,) Beijing Shenzhen Shanghai Guangzhou 6% 4% 2% % -2% -4% -6% -8% -1% -12% 217 avg (LHS) 216 avg (LHS) Yoy (RHS) Page 4

5 Tier II cities Tier II cities: Weekly GFA sales of key cities GF A % change as compared to Avg of Cit y Last week ( sm) w-o-w y-o-y previous 4 weeks Avg 216 Avg 215 Avg 214 Avg 213 Avg 212 Tianjin n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Hangzhou 89 2% -25% -25% -44% -23% 9% % -46% Suzhou % -52% 23% -34% -51% -3% -29% -52% Xiamen n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Changsha n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Ningbo n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Wuhan % -24% -35% -36% -14% 5% 13% 31% Chengdu 119-2% -27% -18% -37% -3% -33% -43% -36% Chongqing 547-1% 83% -9% 16% 34% 29% 26% 28% Qingdao 51 2% 134% 6% 27% 95% 182% 114% 189% Xi'an 27-48% -35% -49% -41% -25% -9% -12% 11% Nanjing % -31% 111% -16% % 53% 21% 57% Dalian 38-8% 6% -5% -39% -32% -13% -34% -14% Fuzhou 26 15% -17% -5% -5% -5% -38% -42% -44% Wuxi n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Shenyang 148 1% -4% -5% -5% -43% -39% -55% -33% Jinan % 41% -26% -33% 6% 52% 44% n.a. Nanchang % 91% -11% -15% 7% 12% 55% 5% Hefei n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Shijiazhuang n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Changchun % 1% -39% -33% -24% -17% -22% -4% Harbin n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Haikou n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Nanning % -7% -27% -8% 17% 69% 72% 131% Lanzhou n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Kunming % 18% -17% 17% 16% 4% 9% 69% Guiy ang n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Wenzhou 99 24% 75% -23% -9% 37% 6% 53% 185% Sanya 99 23% 65% 8% 14% 22% 266% 225% 395% Tier II total 3,57 4% 16% -13% -16% 8% 31% 22% 54% Tier II cities: Weekly ASP of key cities ASP % change as compared to Avg of Cit y Last week (Rmb/sm) w-o-w y-o-y previous 4 weeks Avg 216 Avg 215 Avg 214 Avg 213 Avg 212 Tianjin n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Ningbo 16,499 14% 22% 5% 18% 23% n.a. n.a. n.a. Chongqing 7,87 2% 18% -1% 7% 7% 5% 8% 17% Xi'an 6,293-24% -5% -2% -1% -11% -19% -14% -7% Wuxi n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Shenyang 7,24 % 26% 5% 6% 14% 5% 4% 1% Lanzhou n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Sanya 24,562 15% 49% 5% 27% 25% 8% 9% 3% Tier II total 12,493 2% 22% -1% 9% 12% % 2% 6% Page 5

6 Tier II cities: YTD GFA sales of key cities sm 2,5 2, 1,5 1, 5 (5) (1,) (1,5) Yoy (%) 15% 1% 5% % -5% -1% -15% Wuhan Chongqing Changsha Kunming Xian Qingdao Shenyang Hefei Nanjing Suzhou Chengdu Guiyang Tianjin Nanchang Wuxi Hangzhou Wenzhou Fuzhou Sanya Xiamen Haikou Lanzhou Nanning Dalian Changchun 217 (LHS) 216 (LHS) Yoy (RHS) Tier II cities: Avg ASP of key cities RMB/sm 14, 9, 4, (1,) (6,) (11,) (16,) (21,) (26,) Changsha Xian Chongqing Shenyang Shenyang Yoy (%) 14% 12% 1% 8% 6% 4% 2% % 217 avg (LHS) 216 avg (LHS) Yoy (RHS) Page 6

7 Tier III cities Tier III cities: Weekly GFA sales of key cities GF A % change as compared to Avg of Cit y Last week ( sm) w-o-w y-o-y previous 4 weeks Avg 216 Avg 215 Avg 214 Avg 213 Avg 212 Dongguan % -68% 16% -35% -41% 4% -21% % Weifang n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Baotou 48-6% 21% -44% -28% -15% -14% -11% -33% Guilin n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Xuzhou % 36% -1% 26% 74% 12% 84% 152% Bengbu 54-16% 86% -14% -24% 6% 46% 23% 128% Yangzhou 11 11% 88% 5% 71% 14% 177% 95% 237% Huizhou 84-3% -31% 39% -17% 23% 64% 31% 33% Lianyungang % 26% 23% 23% 53% 79% 42% 73% Shantou 69 8% 112% -13% 13% 1% 279% 219% 268% Zhongshan n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Dandong n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. J iujiang n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Shaoguan 26-5% 53% -49% -29% 15% 34% 25% 69% Luzhou n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Nanchong n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Zhoushan 25-67% 135% -48% -9% 12% 54% 23% 17% Dongying 45 9% 46% -31% 23% 25% 38% -7% 69% Huaian 373 1% 154% -5% 99% 197% 285% 238% 34% Wuhu 28 2% -31% -49% -69% -41% -29% -36% -5% Guan n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. J iaozuo 5 29% -57% -87% -77% -75% -53% -78% -79% Zhaoqing 82 39% 96% 21% 6% 99% 21% 147% 149% Tier III total 1,581 2% 42% -13% 2% 42% 84% 52% 95% Tier III cities: Weekly ASP of key cities ASP % change as compared to Avg of Cit y Last week (Rmb/sm) w-o-w y-o-y previous 4 weeks Avg 216 Avg 215 Avg 214 Avg 213 Avg 212 Dongguan n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Weifang n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Baotou 5,247 % 8% 2% 3% 2% 3% 2% 14% Bengbu n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Shantou 8,367-2% 1% -4% 2% 3% 4% -6% 18% Dandong n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. J iujiang n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Shaoguan 5,727 1% 7% 42% 28% 13% 9% 6% 9% Dongying n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Huaian 5,181 2% 24% 21% 19% 24% 19% 19% 28% J iaozuo n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Zhaoqing 5,759-2% 1% 2% 6% 1% 1% -4% 11% Tier III total 6,56 1% 1% 13% 12% 1% 7% 3% 16% Page 7

8 Tier III cities: YTD GFA sales of key cities sm 1,4 1,2 1, (2) (4) (6) Xuzhou Wuhu Dongguan Lianyungang Weifang Huizhou Zhoushan Baotou Jiujiang Yangzhou Wuhu Bengbu Zhaoqing Shantou Shaoguan Huaian Dongying Yoy (%) 25% 2% 15% 1% 5% % -5% -1% -15% 217 (LHS) 216 (LHS) Yoy (RHS) Tier III cities: Avg ASP of key cities RMB/sm 15, 1, 5, Yoy (%) 18% 16% 14% 12% 1% 8% 6% 4% 2% % Shaoxing Jiujiang Zhaoqing Baotou Shaoguan 217 avg (LHS) 216 avg (LHS) Yoy (RHS) Page 8

9 Inventory level No. of weeks to digest inventory Fuzhou Shenzhen Hangzhou Suzhou Zhoushan Dongying Huizhou Beijing Guangzhou Nanning Bengbu Avg = 36 Shanghai Ningbo Nanjing Trend: No. of weeks to digest inventory weeks 12 1 Tier Tier Tier 2 Jan-11 Mar-12 Jun-13 Aug-14 Nov-15 Jan-17 Tier I average Tier II average Tier III average Notes: 1. Based on 26 weeks average sales 2. Only Huizhou, Jiujiang, Nanchong, Zhoushan and Dongying are included in Tier III cities Page 9

10 Centaline Price Index and Management Index 2 nd hand housing Centaline Price Index 2 nd hand housing W9 14W9 26W9 38W9 5W9 1W1 22W1 34W1 46W1 6W11 18W11 3W11 42W11 2W12 14W12 26W12 38W12 5W12 9W13 21W13 33W13 45W13 6W14 18W14 3W14 42W14 2W15 14W15 26W15 38W15 5W15 9W16 21W16 33W16 45W16 Beijing Shanghai Guangzhou Shenzhen Tianjin Source: CCPR, DBS Vickers Centaline Management Index 2 nd hand housing W1 41W1 48W1 3W11 1W11 17W11 24W11 31W11 38W11 45W11 52W11 7W12 14W12 21W12 28W12 35W12 42W12 49W12 3W13 1W13 17W13 24W13 31W13 38W13 45W13 1W14 8W14 15W14 22W14 29W14 36W14 43W14 5W14 5W15 12W15 19W15 26W15 33W15 4W15 47W15 1W16 8W16 15W16 22W16 29W16 36W16 43W16 5W16 Shenzhen Shanghai Guangzhou Tianjin Source: CCPR, DBS Vickers Page 1

11 Share price performance and peer valuations Valuation comparison 3-mth daily Net Disc/ 17-J an Mkt trading 12-m EPS gth PE PE Yield Yield ROE ROE Gearing P/Bk NAV (Prem) Price Cap value Recom target 17F 18F 17F 18F 17F 18F 17F 18F 1H16 1H16 to NAV Company Name Code HK$ US$bn US$m HK$ % % x x % % % % % x HK$ % Large cap China Overseas* 688 HK BUY Country Garden* 27 HK HOLD (12.9) CR Land* 119 HK BUY China V anke 'H' Susp 222 HK HOLD Evergrande* 3333 HK HOLD n.a n.a Longfor 96 HK FAIL FAIL n.a. n.a. Shimao Property* 813 HK HOLD Average Mid cap Agile Property* 3383 HK FV China South City*^^ 1668 HK FV n.a n.a COGO* 81 HK BUY China J inmao Hldgs* 817 HK BUY Greentown 39 HK NR n.a Guangzhou R&F 2777 HK NR n.a Hopson Dev 754 HK NR n.a n.a. n.a n.a. n.a. KWG Property 1813 HK NR n.a Logan Property 338 HK NR n.a n.a. n.a. Poly (Hong Kong) 119 HK NR n.a Shui On Land* 272 HK HOLD 2.18 (64) Sino-Ocean Land* 3377 HK BUY Soho China* 41 HK HOLD Sunac China 1918 HK NR n.a n.a. n.a. Yuexiu Property* 123 HK HOLD 1. 8 n.a. 1.5 n.a Av erage# Small cap BJ Cap Land 'H' 2868 HK NR n.a n.a. n.a. BJ North Star 'H' 588 HK NR n.a. 33 n.a. 6.1 n.a. 2.7 n.a. 6.6 n.a n.a. n.a. C C Land* 1224 HK Hold (79) (16.6) Central China* 832 HK BUY China SCE 1966 HK NR n.a n.a. n.a. CIFI Holdings 884 HK NR n.a n.a. n.a. First Sponsor*^ FSG SP NR 1.57 (38) Glorious Property 845 HK NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a Hydoo Int'l 1396 HK NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Cash.5 n.a. n.a. Kaisa Group 1638 HK NR n.a n.a n.a. n.a. n.a. Lai Fung* 1125 HK NR n.a. (73) n.a. 1.3 n.a Minmetals Land 23 HK NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a n.a. n.a. Modern Land (China) 117 HK NR n.a n.a. n.a. Powerlong 1238 HK NR n.a n.a. n.a. Renhe Commercial 1387 HK NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a Greenland* 337 HK BUY n.a. 1.5 n.a SRE Group 127 HK NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a n.a. n.a. Sunshine 1 China 268 HK NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a n.a. n.a. Times Property 1233 HK NR n.a n.a. n.a. Wuzhou Int'l 1369 HK NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a n.a. n.a. Ying Li^ YINGLI SP NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a Yuzhou Properties 1628 HK NR n.a Zhong An 672 HK NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a n.a. n.a. Average** Average (Overall)@ ~ ^ Denominated in SGD for price ~ Simple average discount to NAV; Market cap weighted average NAV = 32% # Exclude Soho China & Shui On Land ** Exclude Greenland, First Sponsor & Lai Exclude Soho China, Shui On Land, Greenland, First Sponsor & Lai Fung ^^ FY15: 16F; FY16: FY17F; FY17: FY18F Source: Thomson Reuters, *DBS Vickers Page 11

12 PE valuations, 27 to 216 trough (based on earnings forecasts) 17-J an Mkt 17F 18F Company Name Code Price HK$ Cap US$bn PE x PE x Trough 28 Trough 29 Trough 21 Trough 211 Trough 212 Trough 213 Trough 214 Trough 215 Trough 216 China Overseas* 688 HK Country Garden* 27 HK CR Land* 119 HK China V anke 'H' Susp 222 HK n.a. n.a. n.a. n.a. n.a. n.a Evergrande* 3333 HK n.a. n.a. n.a Longfor 96 HK n.a Shimao Property* 813 HK Av erage Agile Property* 3383 HK China South City*^^ 1668 HK n.a. n.a COGO* 81 HK n.a. n.a. n.a China Jinmao Hldgs* 817 HK Greentown 39 HK Guangzhou R&F 2777 HK Hopson Dev 754 HK KWG Property 1813 HK Logan Property 338 HK n.a. n.a. n.a. n.a. n.a. n.a Poly (Hong Kong) 119 HK Shui On Land* 272 HK Sino-Ocean Land* 3377 HK Soho China* 41 HK Sunac China 1918 HK n.a. n.a Yuexiu Property* 123 HK n.a Av erage# BJ Cap Land 'H' 2868 HK BJ North Star 'H' 588 HK n.a C C Land* 1224 HK n.a. n.a Central China* 832 HK China SCE 1966 HK n.a. n.a CIFI Holdings 884 HK n.a. n.a. n.a. n.a. n.a First Sponsor*^ FSG SP n.a. n.a. n.a. n.a. n.a. n.a Glorious Property 845 HK.74.7 n.a. n.a. n.a Hydoo Int'l 1396 HK.61.3 n.a. n.a. n.a. n.a. n.a. n.a. n.a Kaisa Group 1638 HK n.a. n.a Lai Fung* 1125 HK n.a Minmetals Land 23 HK.94.4 n.a. n.a Modern Land (China) 117 HK n.a. n.a. n.a. n.a. n.a. n.a Powerlong 1238 HK n.a Renhe Commercial 1387 HK n.a. n.a Greenland* 337 HK n.a SRE Group 127 HK.19.5 n.a. n.a Sunshine 1 China 268 HK n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a Times Property 1233 HK n.a. n.a. n.a. n.a. n.a. n.a Wuzhou Int'l 1369 HK.77.2 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a Ying Li^ YINGLI SP.16.3 n.a. n.a. n.a Yuzhou Properties 1628 HK n.a Zhong An 672 HK.62.2 n.a. n.a Av erage** Av erage (Ov erall)@ ^ Denominated in SGD for price # Exclude Soho China & Shui On Land for 16F & 17F PE ** Exclude Greenland, First Sponsor & Lai Fung for 16F & 17F Exclude Soho China, Shui On Land, Greenland, First Sponsor & Lai Fung for 16F & 17F PE ^^ FY15: 16F; FY16: FY17F; FY17: FY18F Source: Thomson Reuters, *DBS Vickers Page 12

13 PE valuations, 27 to 216 peak (based on earnings forecasts) 17-J an Mkt 17F 18F Company Name Code Price HK$ Cap US$bn PE x PE x Peak 28 Peak 29 Peak 21 Peak 211 Peak 212 Peak 213 Peak 214 Peak 215 Peak 216 China Overseas* 688 HK Country Garden* 27 HK CR Land* 119 HK China V anke 'H' Susp 222 HK n.a. n.a. n.a. n.a. n.a. n.a Evergrande* 3333 HK n.a. n.a. n.a Longfor 96 HK n.a Shimao Property* 813 HK Average Agile Property* 3383 HK China South City*^^ 1668 HK n.a. n.a COGO* 81 HK n.a. n.a. n.a China Jinmao Hldgs* 817 HK Greentown 39 HK Guangzhou R&F 2777 HK Hopson Dev 754 HK KWG Property 1813 HK Logan Property 338 HK n.a. n.a. n.a. n.a. n.a. n.a Poly (Hong Kong) 119 HK Shui On Land* 272 HK Sino-Ocean Land* 3377 HK Soho China* 41 HK Sunac China 1918 HK n.a. n.a Yuexiu Property* 123 HK n.a Average# BJ Cap Land 'H' 2868 HK BJ North Star 'H' 588 HK n.a C C Land* 1224 HK n.a. n.a. n.a Central China* 832 HK China SCE 1966 HK n.a. n.a CIFI Holdings 884 HK n.a. n.a. n.a. n.a. n.a First Sponsor*^ FSG SP n.a. n.a. n.a. n.a. n.a. n.a Glorious Property 845 HK.74.7 n.a. n.a. n.a Hydoo Int'l 1396 HK.61.3 n.a. n.a. n.a. n.a. n.a. n.a. n.a Kaisa Group 1638 HK n.a. n.a Lai Fung* 1125 HK n.a Minmetals Land 23 HK.94.4 n.a. n.a n.a Modern Land (China) 117 HK n.a. n.a. n.a. n.a. n.a. n.a Powerlong 1238 HK n.a Renhe Commercial 1387 HK n.a. n.a Greenland* 337 HK n.a SRE Group 127 HK.19.5 n.a. n.a Sunshine 1 China 268 HK n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a Times Property 1233 HK n.a. n.a. n.a. n.a. n.a. n.a Wuzhou Int'l 1369 HK.77.2 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a Ying Li^ YINGLI SP.16.3 n.a. n.a. n.a Yuzhou Properties 1628 HK n.a Zhong An 672 HK.62.2 n.a. n.a Average** Average (Overall)@ ^ Denominated in SGD for price # Exclude Soho China & Shui On Land for 16F & 17F PE ** Exclude Greenland, First Sponsor & Lai Fung for 16F & 17F Exclude Soho China, Shui On Land, Greenland, First Sponsor & Lai Fung for 16F & 17F PE ^^ FY15: 16F; FY16: FY17F; FY17: FY18F Source: Thomson Reuters, *DBS Vickers Page 13

14 PE valuations, 27 to 216 trough (based on reported earnings) 3-mth daily 17-J an Mkt trading F Y17F F Y18F Price Cap value PE PE Avg Trough Trough Trough Trough Trough Trough Trough Trough Trough Company Name Code HK$ US$bn US$m x x PE (x) China Overseas* 688 HK Country Garden* 27 HK CR Land* 119 HK China V anke 'H' Susp 222 HK n.a. n.a. n.a. n.a. n.a Evergrande* 3333 HK n.a. 7. n.a Longfor 96 HK n.a Shimao Property* 813 HK Average Agile Property* 3383 HK China South City*^^ 1668 HK n.a. 5.1 n.a. n.a. n.a COGO* 81 HK (3.5) China J inmao Hldgs* 817 HK Greentown 39 HK Guangzhou R&F 2777 HK Hopson Dev 754 HK KWG Property 1813 HK Logan Property 338 HK n.a. n.a. n.a. n.a. n.a Poly (Hong Kong) 119 HK (2.5) 55.3 Shui On Land* 272 HK Sino-Ocean Land* 3377 HK Soho China* 41 HK n.a. n.a. n.a. n.a. n.a. n.a. n.a Sunac China 1918 HK n.a. n.a. n.a Yuexiu Property* 123 HK n.a (4.6) Average# BJ Cap Land 'H' 2868 HK BJ North Star 'H' 588 HK n.a C C Land* 1224 HK n.a. n.a. n.a. n.a. n.a. n.a. n.a Central China* 832 HK China SCE 1966 HK n.a. n.a CIFI Holdings 884 HK n.a. n.a. n.a. n.a F irst Sponsor*^ FSG SP n.a. n.a. n.a. n.a. n.a. n.a Glorious Property 845 HK n.a. n.a. 1.3 n.a (2.2) (1.4) n.a. Hydoo Int'l 1396 HK n.a. n.a n.a. n.a. n.a. n.a. n.a. n.a n.a. Kaisa Group 1638 HK n.a n.a. n.a. 2.7 Lai Fung* 1125 HK n.a Minmetals Land 23 HK n.a. n.a n.a. Modern Land (China) 117 HK n.a. n.a. n.a. n.a. n.a Powerlong 1238 HK n.a Renhe Commercial 1387 HK n.a. n.a. n.a (3.6) (3.2) (2.3) n.a. Greenland* 337 HK n.a (1.1) SRE Group 127 HK n.a. n.a (1.6) (.6) n.a. Sunshine 1 China 268 HK n.a. n.a. 8.7 n.a. n.a. n.a. n.a. n.a. n.a n.a. Times Property 1233 HK n.a. n.a. n.a. n.a. n.a Wuzhou Int'l 1369 HK n.a. n.a. 1.2 n.a. n.a. n.a. n.a. n.a (5.7) n.a. Ying Li^ YINGLI SP n.a. n.a n.a. Yuzhou Properties 1628 HK n.a Zhong An 672 HK n.a. n.a n.a. Average** Average (Overall)@ HSI Index HSI ^ Denominated in SGD for price # Exclude Soho China & Shui On Land for 16F & 17F PE ** Exclude Greenland, First Sponsor & Lai Fung for 16F & 17F Exclude Soho China, Shui On Land, Greenland, First Sponsor & Lai Fung for 16F & 17F PE ^^ FY15: 16F; FY16: FY17F; FY17: FY18F Source: Thomson Reuters, *DBS Vickers Page 14

15 PE valuations, 27 to 216 peak (based on reported earnings) 3-mth daily 17-J an Mkt trading F Y17F F Y18F Price Cap v alue PE PE A v g Peak Peak Peak Peak Peak Peak Peak Peak Peak Company Name Code HK$ US$bn US$m x x PE (x) China Overseas* 688 HK Country Garden* 27 HK CR Land* 119 HK China V anke 'H' Susp 222 HK n.a. n.a. n.a. n.a. n.a Evergrande* 3333 HK n.a. 7. n.a Longfor 96 HK n.a Shimao Property* 813 HK Average Agile Property* 3383 HK China South City*^^ 1668 HK n.a. 5.1 n.a. n.a. n.a COGO* 81 HK n.a China Jinmao Hldgs* 817 HK Greentown 39 HK Guangzhou R&F 2777 HK Hopson Dev 754 HK KWG Property 1813 HK n.a Logan Property 338 HK n.a. n.a. n.a. n.a. n.a Poly (Hong Kong) 119 HK (6.8) 78.8 Shui On Land* 272 HK Sino-Ocean Land* 3377 HK Soho China* 41 HK n.a Sunac China 1918 HK n.a. n.a. n.a Yuexiu Property* 123 HK n.a n.a Average# BJ Cap Land 'H' 2868 HK BJ North Star 'H' 588 HK n.a C C Land* 1224 HK n.a. n.a Central China* 832 HK China SCE 1966 HK n.a. n.a CIFI Holdings 884 HK n.a. n.a. n.a. n.a First Sponsor*^ FSG SP n.a. n.a. n.a. n.a. n.a. n.a Glorious Property 845 HK n.a. n.a. 1.3 n.a (3.8) (2.3) n.a. Hydoo Int'l 1396 HK n.a. n.a n.a. n.a. n.a. n.a. n.a. n.a n.a. Kaisa Group 1638 HK n.a n.a. n.a. 2.7 Lai Fung* 1125 HK n.a Minmetals Land 23 HK n.a. n.a n.a. Modern Land (China) 117 HK n.a. n.a. n.a. n.a. n.a Powerlong 1238 HK n.a Renhe Commercial 1387 HK n.a. n.a. n.a (8.4) (5.5) (7.3) n.a. Greenland* 337 HK n.a (1.8) SRE Group 127 HK n.a. n.a (13.9) (2.7) n.a. Sunshine 1 China 268 HK n.a. n.a. 8.7 n.a. n.a. n.a. n.a. n.a. n.a n.a. Times Property 1233 HK n.a. n.a. n.a. n.a. n.a Wuzhou Int'l 1369 HK n.a. n.a. 1.2 n.a. n.a. n.a. n.a. n.a (15.) n.a. Ying Li^ YINGLI SP n.a. n.a n.a. Yuzhou Properties 1628 HK n.a Zhong An 672 HK n.a. n.a n.a. Average** Average (Overall)@ HSI Index HSI ^ Denominated in SGD for price # Exclude Soho China & Shui On Land for 16F & 17F PE ** Exclude Greenland, First Sponsor & Lai Fung for 16F & 17F Exclude Soho China, Shui On Land, Greenland, First Sponsor & Lai Fung for 16F & 17F PE ^^ FY15: 16F; FY16: FY17F; FY17: FY18F Source: Thomson Reuters, *DBS Vickers Page 15

16 Share price performance Price Performance 27 1-wk 2-wk 1-mth 2-mth 3-mth 4-mth 5-mth 6-mth YTD 1-yr high % % % % % % % % % % % % % % % % Tier 1 players China Overseas 688 HK (4.7) (11.7) (15.1) (12.6) (5.6) (24.4) 2.2 Country Garden 27 HK (.7) (.9) (.9) (1.6) (32.8) (66.9) CR Land 119 HK (2.7) (13.) (12.2) (2.1) (8.9) (22.8) (8.8) China Vanke 'H' 222 HK (7.8) (3.4) n.a. n.a. n.a (22.7) n.a. Evergrande 3333 HK (1.1) (1.5) (1.3) (9.5) (2.4) 32. (3.4) (29.2) n.a. Longfor Properties 96 HK (11.) (9.2) (.9) (28.6) (7.8) 15.7 (14.9) n.a. Shimao Property 813 HK (1.) (4.8) (6.2) (.4) 1.4 (8.1) (2.7) (2.5) (26.4) (64.6) Average (.1) (5.1) (4.3) (6.1) (4.2) 26.2 (14.9) (3.1) Tier 2 players Agile Property 3383 HK (.7) (3.3) (4.) (9.3) (14.3) (9.5) (23.8) (46.9) (2.) (8.6) (79.1) China South City 1668 HK (2.9) (2.3) (5.6) (7.4) n.a. COGO 81 HK (1.9) (8.9) (1.1) 15.6 (2.7) (46.7) (16.8) (22.9) (41.7) China Jinmao Hldgs 817 HK (.4) (11.5) (7.5) (1.3) (3.2) (17.4) 19.4 (21.1) (64.3) Greentown 39 HK (1.3) (2.5) (3.3) (2.7) (2.7) (7.6) (1.6) 4.4 (2.5) (16.6) (35.). (18.4) (68.7) GZ R&F 2777 HK (2.2) (7.4) (2.2) (18.1) (14.6) (12.1) (16.3).6 (1.8) (77.) Hopson Dev 754 HK. (.3) (2.6) (3.5) (4.3) (1.) (7.2) (2.7) (.6) (24.6) (24.) 8.7 (1.5) (78.) KWG 1813 HK (.4) 2.1 (3.3) (13.6) (17.3) (4.3) (26.1) (17.8) (64.9) Logan Property 338 HK..3 (2.6) (4.9) (9.3) (14.8) (13.5) (1.) n.a. n.a n.a. Poly HK 119 HK (31.7) (22.9) (2.7) 1.6 (72.4) Shui On Land 272 HK (1.2) (1.8) (1.2) (9.4) (16.) (24.5) (24.5) (22.) (2.4) (12.4) 58.9 (31.1) (23.1) 16.4 (21.6) (83.5) Sino-Ocean 3377 HK (1.4) (1.4) (1.7) (8.3) (4.7) (2.3) (1.7) (14.5) 6.8 (12.1) (13.4) 12.7 (3.2) (77.3) SOHO China 41 HK (.3) (4.6) (13.8) (9.4) (18.) (31.4) 1.6 (66.9) Sunac China 1918 HK (4.3) 1.5 (1.9) (22.5) 69.7 (24.) 7.5 n.a. Yuexiu Property 123 HK (1.8). (4.3) (9.1) (1.8) (2.7) (22.) (16.8) (1.1) (2.9) (61.8) Average (5.6) (3.8) (11.1) (8.5) (.9) (8.4) (68.7) Tier 3 players BJ Cap. Land 2868 HK (1.) (3.2) (11.7) (2.9) (18.) (18.) (59.7) BJ North Star 588 HK (1.2) (3.5) (5.) (13.) (6.4) (.8) (16.7) (7.) (68.7) C C Land 1224 HK (2.1) (2.9) 88.9 (28.3) (3.8) 79.3 (6.6) (85.9) Central China 832 HK.6 (1.8) (1.8) (1.2) (9.5) (8.) (4.7) 5.2 (4.1) (12.8) (26.8) (7.4) 4.3 n.a. China SCE Property 1966 HK (.8) 2.1 (3.6) (5.9) (12.4) n.a. CIFI Holdings 884 HK (.5) (1.8) (.9) (14.4) (.9) n.a (6.1) n.a. First Sponsor FSG SP.. (.4) n.a. n.a. n.a n.a. Glorious Property 845 HK. (1.3) (5.1) (4.8) (18.7) (23.7) (17.8) 7.2 (2.6) (1.8) (28.1) (25.) (15.6) n.a. Hydoo Int'l 1396 HK (14.1). 13. (16.4) (2.8) (19.7) (31.5) (34.4) 5.2 (4.2) n.a. n.a. (13.5) (44.) (46.3) n.a. Kaisa Group 1638 HK (36.4) (1.9). n.a. Lai Fung 1125 HK (5.3) (19.9) (17.2) 23.8 (62.1) Minmetals Land 23 HK (3.1) (4.1) (4.1) (3.1) (3.1) (19.5) (13.6) (74.6) Modern Land (China) 117 HK. 1. (3.8) (2.9) (8.1) (8.9) (17.7) (23.3) (1.) (45.7) n.a. n.a (53.2) n.a. Powerlong 1238 HK (1.7) (3.) (3.) 1.8 (8.1) (.4) (34.3) n.a. Renhe Commercial 1387 HK (3.4) (1.5) (3.9).5 (2.).5 (9.7) (2.) (1.5) (38.8) (8.9) (38.9) (28.1) 5.9 (44.7) n.a. Greenland 337 HK (3.9) (7.9) (9.4) (12.1) (15.9) (23.3) (3.4) (34.1) (9.8) (22.3) (18.3) (1.9) (36.1) (76.7) SRE Group 127 HK (3.5) (3.5) (1.) (6.3) (2.2) (27.2) (16.8) (9.) (3.) (42.4) 24.2 (32.9) (2.8) 73.8 (45.5) (94.3) Sunshine 1 China 268 HK (4.8) (8.7) (3.9) (9.8) (13.5) (4.8) (9.5) (15.5) (2.3) (15.7) n.a. n.a. n.a n.a. Times Property 1233 HK (2.) 1.3 (6.4) n.a. n.a. (5.7) (18.2) 4.4 n.a. Wuzhou Int'l 1369 HK. (1.3) (1.3) (2.5) (2.5). (1.3) (2.5) (1.3) (4.9) n.a. n.a. 14. (44.9) (3.7) n.a. Ying Li YINGLI SP (1.8) (1.8) (38.) (32.2) (1.2) (86.3) Yuzhou Properties 1628 HK (6.7) (1.1) n.a. Zhong An 672 HK (1.6) (1.6). (12.7) (13.9) (13.9) (2.5) (13.9) (3.1) (2.5) (2.8) (28.9) (21.) (89.3) Average (1.1).5 (.1) (3.8) (3.8) (3.1) (2.6) (13.5) 6.9 (4.5) (75.9) Average (Overall) (1.2) (1.8) (4.2) (3.3) (4.9) (1.4) 6.9 (7.4) (65.8) Hang Seng Index (.9) (2.1) (7.2).4 (27.8) MSCI China (1.5) (2.4) (.3) (1.1) (1.4) (4.9) Source: Thomson Reuters Page 16

17 Historical valuations NAV discount / (premium) (%) PE (x) PB (x) 17-J an Company name Code Price HK$ Current Hist av g + 1 s.d. - 1 s.d. Current (FY17) Hist av g + 1 s.d. - 1 s.d. Current Hist av g + 1 s.d. - 1 s.d. Agile Property 3383 HK C C Land 1224 HK (7.2) Central China 832 HK China Overseas 688 HK (2.9) China V anke-h 222 HK China V anke-a* 2 CH 2.8 (11.6) (12.9) (38.6) COGO 81 HK (3.2) Country Garden 27 HK 4.27 (12.9) (4.1) CR Land 119 HK Evergrande 3333 HK First Sponsor FSG SP n.a. n.a. n.a China Jinmao 817 HK Shimao Property 813 HK Shui On Land 272 HK Sino-Ocean Land 3377 HK SOHO China 41 HK (3.7) Greenland 337 HK Yuexiu Property 123 HK Sector average 51.4** 46.4~ 39.9~ 53.~ ~ 8.1~ 5.9~.7.8~.9~.6~ ^ Share price denominated in SGD ** Exclude Soho China, Shui On Land, Greenland, First Sponsor & Lai Fung ~ 21-YTD Source: Thomson Reuters, DBS Vickers Page 17

18 DBSVHK recommendations are based an Absolute Total Return* Rating system, defined as follows: STRONG BUY (>2% total return over the next 3 months, with identifiable share price catalysts within this time frame) BUY (>15% total return over the next 12 months for small caps, >1% for large caps) HOLD (-1% to +15% total return over the next 12 months for small caps, -1% to +1% for large caps) FULLY VALUED (negative total return i.e. > -1% over the next 12 months) SELL (negative total return of > -2% over the next 3 months, with identifiable catalysts within this time frame) Share price appreciation + dividends Completed Date: 17 Jan :9:34 (HKT) Dissemination Date: 17 Jan :14:54 (HKT) GENERAL DISCLOSURE/DISCLAIMER This report is prepared by DBS Vickers (Hong Kong) Limited ( DBSVHK ). This report is solely intended for the clients of DBS Bank Ltd., DBS Vickers Securities (Singapore) Pte Ltd. ( DBSVS ) and DBSVHK, its respective connected and associated corporations and affiliates only and no part of this document may be (i) copied, photocopied or duplicated in any form or by any means or (ii) redistributed without the prior written consent of DBSVHK. The research set out in this report is based on information obtained from sources believed to be reliable, but we (which collectively refers to DBS Bank Ltd., DBSVS and DBSVHK, its respective connected and associated corporations, affiliates and their respective directors, officers, employees and agents (collectively, the DBS Group )) do not make any representation or warranty as to its accuracy, completeness or correctness. Opinions expressed are subject to change without notice. This document is prepared for general circulation. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate independent legal or financial advice. The DBS Group accepts no liability whatsoever for any direct, indirect and/or consequential loss (including any claims for loss of profit) arising from any use of and/or reliance upon this document and/or further communication given in relation to this document. This document is not to be construed as an offer or a solicitation of an offer to buy or sell any securities. The DBS Group, along with its affiliates and/or persons associated with any of them may from time to time have interests in the securities mentioned in this document. The DBS Group may have positions in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment banking and other banking services for these companies. Any valuations, opinions, estimates, forecasts, ratings or risk assessments herein constitutes a judgment as of the date of this report, and there can be no assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments. The information in this document is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed, it may not contain all material information concerning the company (or companies) referred to in this report and the DBS Group is under no obligation to update the information in this report. This publication has not been reviewed or authorized by any regulatory authority in Singapore, Hong Kong or elsewhere. There is no planned schedule or frequency for updating research publication relating to any issuer. The valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report were based upon a number of estimates and assumptions and are inherently subject to significant uncertainties and contingencies. It can be expected that one or more of the estimates on which the valuations, opinions, estimates, forecasts, ratings or risk assessments were based will not materialize or will vary significantly from actual results. Therefore, the inclusion of the valuations, opinions, estimates, forecasts, ratings or risk assessments described herein IS NOT TO BE RELIED UPON as a representation and/or warranty by the DBS Group (and/or any persons associated with the aforesaid entities), that: (a) such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, and (b) there is any assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments stated therein. Please contact the primary analyst for valuation methodologies and assumptions associated with the covered companies or price targets. Any assumptions made in this report that refers to commodities, are for the purposes of making forecasts for the company (or companies) mentioned herein. They are not to be construed as recommendations to trade in the physical commodity or in the futures contract relating to the commodity referred to in this report. DBS Vickers Securities (USA) Inc ("DBSVUSA"), a U.S.-registered broker-dealer, does not have its own investment banking or research department, has not participated in any public offering of securities as a manager or co-manager or in any other investment banking transaction in the past twelve months and does not engage in market-making. Page 18

19 ANALYST CERTIFICATION The research analyst(s) primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views. The analyst(s) also certifies that no part of his/her compensation was, is, or will be, directly or indirectly, related to specific recommendations or views expressed in the report. The DBS Group has procedures in place to eliminate, avoid and manage any potential conflicts of interests that may arise in connection with the production of research reports. As of 17 January 217, the analyst(s) and his/her spouse and/or relatives who are financially dependent on the analyst(s), do not hold interests in the securities recommended in this report ( interest includes direct or indirect ownership of securities). The research analyst(s) responsible for this report operates as part of a separate and independent team to the investment banking function of the DBS Group and procedures are in place to ensure that confidential information held by either the research or investment banking function is handled appropriately. COMPANY-SPECIFIC / REGULATORY DISCLOSURES 1. DBSVHK and its subsidiaries do not have a proprietary position in the securities recommended/mentioned in this report as of 16 Jan Compensation for investment banking services: DBS Bank Ltd., DBSVS, DBSVHK, their subsidiaries and/or other affiliates of DBSVUSA have received compensation, within the past 12 months for investment banking services from China South City Holdings Limited (1668 HK), China Overseas Grand Oceans Group (81 HK), Yuexiu Property Company Limited (123 HK) and Central China Real Estate Limited (832 HK) as of 31 Dec 216. DBS Bank Ltd., DBSVS, DBSVHK, their subsidiaries and/or other affiliates of DBSVUSA, within the next 3 months, will receive or intend to seek compensation for investment banking services from China Overseas Grand Oceans Group (81 HK) as of 31 Dec 216. DBS Bank Ltd., DBSVS, DBSVHK, their subsidiaries and/or other affiliates of DBSVUSA have managed or co-managed a public offering of securities for China South City Holdings Limited (1668 HK), Yuexiu Property Company Limited (123 HK) and Central China Real Estate Limited (832 HK) in the past 12 months, as of 31 Dec 216. DBSVUSA does not have its own investment banking or research department, nor has it participated in any public offering of securities as a manager or co-manager or in any other investment banking transaction in the past twelve months. Any US persons wishing to obtain further information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this document should contact DBSVUSA exclusively. 3. Disclosure of previous investment recommendation produced: DBS Bank Ltd, DBSVS, DBSVHK, their subsidiaries and/or other affiliates of DBSVUSA may have published other investment recommendations in respect of the same securities / instruments recommended in this research report during the preceding 12 months. Please contact the primary analyst listed in the first page of this report to view previous investment recommendations published by DBS Bank Ltd, DBSVHK, their subsidiaries and/or other affiliates of DBSVUSA in the preceding 12 months. RESTRICTIONS ON DISTRIBUTION General This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. Australia Hong Kong Indonesia Malaysia This report is being distributed in Australia by DBS Bank Ltd. ( DBS ) or DBS Vickers Securities (Singapore) Pte Ltd ( DBSVS ) or DBS Vickers (Hong Kong) Limited ( DBSVHK ), which are exempted from the requirement to hold an Australian Financial Services Licence under the Corporation Act 21 ( CA ) in respect of financial services provided to the recipients. Both DBS and DBSVS are regulated by the Monetary Authority of Singapore under the laws of Singapore, and DBSVHK is regulated by the Securities and Futures Commission of Hong Kong under the laws of Hong Kong, which differ from Australian laws. Distribution of this report is intended only for wholesale investors within the meaning of the CA. This report is being distributed in Hong Kong by DBSVHK which is licensed and regulated by the Hong Kong Securities and Futures Commission. This report is being distributed in Indonesia by PT DBS Vickers Sekuritas Indonesia. This report is distributed in Malaysia by AllianceDBS Research Sdn Bhd ("ADBSR"). Recipients of this report, received from ADBSR are to contact the undersigned at in respect of any matters arising from or in connection with this report. In addition to the General Disclosure/Disclaimer found at the preceding page, recipients of this report are advised that ADBSR (the preparer of this report), its holding company Alliance Investment Bank Berhad, their respective connected and associated corporations, affiliates, their directors, officers, employees, agents and parties related or associated with any of them may have positions in, and may effect transactions in the securities mentioned herein and may also perform or seek to perform broking, investment banking/corporate advisory and other services for the subject companies. They may also have received compensation and/or seek to obtain compensation for broking, investment banking/corporate advisory and other services from the subject companies. Wong Ming Tek, Executive Director, ADBSR Page 19